Daewoo signs Power Plant Deal in Iran

South Korea’s Daewoo Engineering & Construction has signed a contract to build a 500-megawatt (MW) combined-cycle power plant in Iran’s southeastern city of Kerman.

The estimated value is some $500 million.

Under the deal with Iranian investment firm Omid, Daewoo E&C will team with the state-run Korea Western Power and Gohar Energy of Iran.

A Daewoo spokesman is quoted by Korea Times as saying:

“Expectations are that we can establish a stable revenue source, as Omid is one of the most influential companies in Iran.

“We have taken an upper hand in the Iranian plant industry, which is gaining the spotlight as the next emerging energy market.”

An official added:

“By 2020, the country is likely to install additional power plants whose combined capacity will top 5,000 MW each year … On top of that, Iran is also planning to renovate some outdated power facilities generating a total of some 17,000 MW.”